1. 2011-12 NKU Annual Budget Process NKU Budget Office Training Presentation 12.15.11 and 01.06.12

2. Budget Letter  Communicates that the annual budget process is starting  Includes the annual budget calendar  Includes some planning parameters (benefit rate increases)  Posted to the Budget Office Website (Forms and Instructions) and Campus is notified via the Budget Office Listserv  http://ppb.nku.edu/budget/bgttoolkit/index.php http://ppb.nku.edu/budget/bgttoolkit/index.php  VPs may implement an internal process and calendar for their own division

3. Fixed Costs Projections  Unit managers project fixed costs  VP Offices review, verify, and approve projections  Fixed costs are funded prior to any other investments  Information determines if there are funds available for other investments (i.e. compensation increases)  Only items already approved as fixed costs in a previous annual budget process are listed  New Fixed Cost to be considered would be requested as an Essential Expenditures, through an Investment Pool, or through the Reallocation Process

4. Revenue Projections  Unit managers with revenue responsibility submit projections  VP Offices review, verify, and approve projections  Central revenue source projections help determine funds available for fixed cost increases and necessary investments  Accessible unit and line revenue projections – these revenues are tied to a units expenditures – either by line or the total of the unit

5. Fee and Service Charge Process  Board of Regents must approve all fees and service charges per Board regulations  VP Offices reviews, verifies, and approves/disapproves all requests and considers the implications of the additional charge/revenue on other funding sources for the unit  Executive Team reviews and approves/disapproves all requests that have been approved by a unit’s Vice President. Executive Team approved fees and service charges are advanced to the Board of Regents for consideration  Faculty Senate, Staff Congress, and SGA are provided the proposed changes and are given the opportunity to provide feedback and ask questions

6. Essential Expenditure Request Process  To ensure that significant mandatory expenses are funded  All requests which meet the criteria that are recommended by a Vice President are reviewed by Exec. Team and approved/disapproved by the President  Definition: 1.Protect the university from significant legal and financial liability 2.Maintain the safety and security of our students, faculty, and staff 3.Required to comply with new federal or state regulations

7. One-Time Funds Request Process  A request for one-time funds process will be undertaken this year to allow units to request funds for up to two years to fund:  One-time purchases  One to two year projects which do not require additional recurring funds upon completion  One to two years of start-up funds for initiatives which will be self-supporting or funded through internal reallocation after two years  Requests approved by the Division Vice President will be sent to the Budget Office  Division Vice President presents requests to the President and the Executive Team during Budget Hearings  The President has final decision on funding approval of requests

8. Reallocation Process  Process by which Divisions request permanent budget changes  Moving funds from one unit to another (the total for the Division is Zero)  Moving funds within a unit from personnel to operating, etc. ( the total for the unit is Zero)  Budget hearings are held and the President has final approval  If the President and Executive Team determine that a central budget rescission will be implemented, it is included as part of this process (the total for the Division is negative)  Considerations  Changes in cost drivers such as price, enrollment, quantity, etc.  Unit alignment plans and findings  Mission centrality and necessity  Other available sources of funds such as carryforward, fee revenues, revenue sharing, IDC, private

9. Operating Pool Alignment Process  Process by which units can align expenditures within their 550000 Operating Pool with their desired commitment items  Optional since budget checking for the operating pool is by pool rather than individual commitment item  SAP BIIP budget system open to unit managers last two weeks of May  The pooled operating total for each Fund Center should be Zero when the re-alignment is complete

10. Investment Pool Allocation Process  Used if funds are available after fixed costs and essential expenditures are funded to provide central budget allocations  The process to determine how investment pool funds are allocated can vary such as:  Campus-wide request process  Closed request process  Executive Team / Presidential determination without a request process  Allocations may not be included with a Division’s original budget due to timing constraints (loaded as part of the revised budget in July)

11. Information Resources  For further information on the Budget Process go to Budget Office Web Site at:  http://ppb.nku.edu/budget/bgttoolkit/index.php http://ppb.nku.edu/budget/bgttoolkit/index.php  http://ppb.nku.edu/budget/aboutbgt/annbgtprocess.php http://ppb.nku.edu/budget/aboutbgt/annbgtprocess.php  We recommend that you join the Budget Office listserv to stay up to date on budget announcements and policy changes. Information on how to join can be found on the Budget Office Website (internal budget toolkit):  http://ppb.nku.edu/budget/bgttoolkit/listserv.php http://ppb.nku.edu/budget/bgttoolkit/listserv.php